Mexico's Policy Reforms Ironically Hurt Its Stock Market

A few big companies dominate the indexes, creating share-price vulnerability. One bright spot: Wal-Mart de Mexico.

Mexico is doing all the right things, passing landmark reforms that open up its energy and telecommunications sectors to encourage competition and foreign investors. But its stock market performance this year is dismal. The iShares MSCI Mexico Capped ETF (ticker: EWW) has lost 6.4%, underperforming the iShares MSCI Brazil Capped ETF (EWZ), even though Brazil is doing nothing right.